Governance News 24 January 2024

45 minute read (PDF Download) 24.01.2024 Mark Standen, Siobhan Doherty, Kate Hilder

Our first issue for 2024 has a strong ESG focus. The Australian government has taken the next step towards legislating a new mandatory, ISSB-aligned climate-disclosure regime with the release of draft Bill for consultation. On the financial services front, the Australian Law Reform Commission completed its three stage review of financial services regulation, with the final report setting out 58 recommendations for a proposed new financial services regime and more….

Shareholder Activism Navigation Show below Hide below

Global report finds shareholder activism globally reached 'record' levels in 2023 driven by increases in activity in Europe and APAC
Nature risk | Tesla, GM targeted with shareholder proposals calling for a moratorium on deep-sea mining
Nature risk | Granite Construction challenged on (alleged) lack of alignment between public nature commitments and choice of projects/lobbying stance
Living wage | Companies to face continued pressure in 2024 to pay workers (including contractors and subcontractors) a 'living wage', Walgreens shareholders to vote on shareholder 'living wage' proposal at upcoming meeting
Extended Producer Responsibility | As You Sow set to target companies with formal shareholder 'EPR' proposals calling on companies to take financial responsibility for collecting and recycling their packaging at its end-of-life
Single-use plastics | Companies targeted with shareholder plastics proposals
Shareholder 'right to repair' proposal successfully blocked by tractor company John Deere
Exxon applies to Texas Court in bid to block shareholder Scope 3 proposal
Greenwashing | Consumer group sues Starbucks over (allegedly) misleading claims, separately the company is facing calls for board change

Institutional Shareholders and Stewardship Navigation Show below Hide below

Revised UK Corporate Governance Code released
Asset managers targeted with shareholder proposals calling on them to review of their proxy voting records on shareholder ESG proposals
French regulator flags plans to examine asset manager voting and shareholder engagement policies as part of its 2024 supervisory agenda
In Brief | ShareAction report flags steep decline in asset managers' support for shareholder ESG proposals in 2023 with only 3% of assessed resolutions securing majority support (vs 21% in 2021)
In Brief | IIGCC has released new net zero voting guidance to support asset owners and asset managers in developing their own net zero voting policies and practices. Among other things, the guidance 'encourages' asset owners to conduct annual reviews of manager voting behaviour following the AGM season to assess how 'managers’ commitments (eg Climate Action 100+) align with their voting actions'

ESG Navigation Show below Hide below

Nature-related risk | Over 300 companies and financial institutions commit to adopting TFND framework, Bank of America and NBIM among the early adopters
Mining peak body releases five new commitments to conserve nature
In Brief | Plastic pollution: The Australia Institute suggests that the introduction of an EU-style levy on plastic package waste that is not recycled could generate $1.5bn per year for the Australian economy and serve as a powerful disincentive for the continued production and consumption of plastic waste
In Brief | The Network for Greening the Financial System has released technical guidance to central banks and financial markets supervisors on developing scenarios to assess nature-related financial risks

Meetings and Proxy Advisers Navigation Show below Hide below

ISS to include its assessment of US companies' potential risk of experiencing a cyber incident in reports following the introduction of new SEC cyber rules
2023 AGM season: Shareholders 'strike' (again) on pay

Disclosure and Reporting Navigation Show below Hide below

Top Story | Mandatory Climate Reporting in Australia: Draft Bill released for consultation
'Unnecessary': ACSI calls for repeal of 2021 changes to continuous disclosure laws

Financial Services Navigation Show below Hide below

Top Story | Reframing financial services regulation | ALRC Final Report released
'Technical' nature of offending does not lessen the seriousness of the offence: Australian Bank fined $800K for giving customers incorrect information about their interest rates as a result of a 'technical' error
Financial advice | UK regulator convenes new industry-led, sustainability working group for financial advisers
Predatory lending | ASIC extends product intervention orders for short term credit and continuing credit contracts
APRA retires prudential practice guides on the risk management framework for life and general insurers
In Brief | Financial Advice: ASIC has urged AFS licensees to register their 'relevant providers' by 16 February 2024 cautioning that 'advisers who provide personal advice to retail clients without being registered after 16 February, together with their authorising AFS licensee(s), will be in breach of the law and face potential regulatory action'

Risk Management Navigation Show below Hide below

Top Story | ACCC spot check of contracts reveals UCT concerns
Top Story | Making waves – unfair terms regime extends beyond Australia
Top Story | New AHRC regulatory powers and WGEA reporting changes
Top Story | Mandatory safety guardrails foreshadowed for high-risk AI
Top Story | Australia's roadmap to global cyber leadership
Cybersecurity | SEC X account (formerly Twitter) hacked, Chair acknowledges the incident may have shaken confidence in the security of the regulator's social media accounts
In Brief | The ACSC has released updated guidance for boards around planning for critical vulnerabilities and major cybersecurity incidents including suggested questions for directors to put to senior management/outsourced service providers
In Brief | The NSW Anti-slavery Commissioner has published a new modern slavery due diligence and reporting framework to assist entities that participate in the NSW Procurement Policy Framework and other entities that have due diligence or reporting obligations – eg certain universities, Local Aboriginal Land Councils - to discharge their due diligence and reporting obligations under the Modern Slavery Act 2018 (NSW)

Other News Navigation Show below Hide below

Replacement of the AAT with new Administrative Review Tribunal: Bills referred to Committee

Contact

Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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